EGP and Brazil: a Winning Combination

Published on Monday, 29 December 2014

The end of 2014 has brought with it a number of new developments for Enel Green Power in Brazil, with the Enel Group's green energy business being awarded – following a public tender – 20-year power supply contracts for electricity produced from the new Morro do Chapéu wind farm. The new facility will be built in the State of Bahia in the northeast of the country, where EGP already has approximately 400 megawatts of wind power projects either in operation or under construction.

Throughout the year the Brazilian electricity sector has had to deal with what has been called 'the perfect storm': delays to the construction of transmission networks, droughts that have prevented power from reaching reservoirs and the limited storage capacity of those reservoirs. These three issues have led to a rise in prices, which have in turn had a strong impact on the market, where the Enel Group operates through both EGP and its distribution companies Ampla and Coelce.

'The year 2015 will be a hugely important year in which the Brazilian government will continue its efforts in lessening the structural limits of the power system, while EGP will continue to refine its commercialisation strategies in the free market and participate in energy auctions,' says Maurizio Bezzeccheri, head of Enel Green Power Latin America. 'The other big news at the end of 2014 was the victory in a public tender for the allocation of more than 250MW of PV solar projects, which continues our recent successes in PV technology, which offers huge development opportunities for Brazil.'

 The South American nation is in fact among the leading countries in the world for renewable energy production, thanks to the more than 98 gigawatts that make up approximately 85 percent of the country's total installed capacity. EGP's green energy production will help satisfy Brazil's increasing energy demand, which is estimated to grow at an average annual rate of four percent between now and 2020.